TPG Angelo Gordon Sold Chicago Industrial Buildings for $70M

Real estate investment giant TPG Angelo Gordon sold off a 5-building portfolio of industrial properties in and around Chicago last week.

TPG sold the buildings to Los Angeles-based Cannon Industrial for $70 million, public records show.

The properties are:

3700 South Kedzie Avenue, Chicago
3200 South Kilbourn Avenue, Chicago
4400 West 25th Place, Chicago
1351 Wheeling Road, Wheeling
1900 25th Avenue, Broadview

It’s unclear, based on public records, if TPG Angelo Gordon sold the portfolio for more than the company originally bought it for around 2018 and 2019.

Deeds recorded for the South Kedzie property (an industrial bakery) indicate that TPG Angelo Gordon’s predecessor, Angelo Gordon & Company, bought the 189,000-square-foot property for about $20 million in 2018 and sold it for about $20 million again last month. New York-based TPG acquired Angelo Gordon along with its existing assets in 2023.

New York-based Angelo Gordon bought the South Kilbourn and West 25th Place properties for a combined $26 million in 2019 and sold them for $25 million in May, records show.

Prior sale prices of the other properties are unclear. Representatives of TPG and Cannon Commercial did not respond to requests for comment.

At least one of the properties was subject to a sale leaseback agreement, according to prior reporting from Traded Chicago. It is possible the other properties were subject to similar agreements because the head of net lease real estate at Angelo Gordon at the time, Gordon Whiting, signed the deeds, mortgages and LLC paperwork associated with the properties, according to public records.

Though TPG likely did not turn a massive profit on the portfolio, the firm is cashing in at a busy time in Chicago’s industrial sector. The market underwent a big surge in inventory during the pandemic, as needs for distribution centers and other developments related to online infrastructure were getting underway.

And they are not the only ones.

Last month, Industrial developer Dermody started to shed portions of the 232-acre former Allstate headquarters at 2775 Sanders Road in Glenview that the company bought in 2022, public records show.

Reno, Nevada-based Dermody sold a portion of the campus split among two parcels to San Diego-based real estate investment firm Realty Income for $175 million.

Data shows investors, developers and tenants are not backing away from the industrial market in the Chicago area.

In the first quarter of the year, vacancy across the region improved by 10 basis points quarter-over-quarter to 5.9 percent, a report from NAI Hiffman found. In the first quarter of 2020, before the full effects of the pandemic had been felt in Chicagoland, the region’s vacancy rate was just over 6 percent.